2. Gujarat: Economic Profile
Population 50.5 million (5%)
Area 196,000 sq. km. (6%)
NSDP (in 2003-04 at 1993-94
constant prices)
US$ 19.27 billion (6.3%)
Manufacturing sector US$ 5.17 billion
Fixed Capital Investment US$ 17.9 billion (18.5%)
Industrial Production US$ 39.72 billion (16.2%)
Exports 14% of India
(Source: ASI ) Figures in brackets show % share of India
With 5% of India’s population, Gujarat has 16% of industrial production.
Gujarat had an annual average growth of 9% in the last 3 years and
an average industrial growth of 15%.
4. India – Japan Bilateral Trade
India’s Current Imports
(US$ 3.1 billion) (2.88% Share)
India’s Current Exports
(US$ 2.0 billion) (2.51% Share)
Ships, Boats, Floating Structures
and Parts thereof
Diamonds and Jewellery
Motor Parts and Accessories Iron Ore
Project Goods Marine Products
Iron, Steel, Alloys and Parts
thereof
Petroleum, Inorganic & Organic
Chemicals
Electronic Products Cotton Garments and Textiles
Electric, Mechanical Machinery
& Parts thereof
Castor Oil and its derivatives
Photography & Cinematography
equipment
Software
Chemicals & Allied Products Cashew-nuts, Spices, Tea,
Coffee, etc
5. Gujarat: Sectoral Production
(Source: ASI)
59.3
9.3
7.5
7.4
9.5
2.4 4.6 Chemicals & Petroleum
Food Processing
Metallurgical Industries
Textile & Garments
Engineering
Mineral Based
Others
6. Gujarat: Share in India
Refined Petroleum Products 50%
Drugs & Pharmaceuticals 45%
Chemicals & Allied Products 31%
Soda Ash 98%
Caustic Soda 35%
Polyester Filament Yarn 45%
Textiles 15%
Sponge Iron (HBI) 35%
Fertilizers 30%
Cement 9%
Salt 70%
Groundnut 35%
Cotton 18%
Psyllium Husk 100%
Castor Seeds 70%
(45% of world)
Market Capitalization 30%
8 out of every 10 diamonds in the world are
processed in Gujarat
7. MNCs in Gujarat
• General Motors (Halol)
• GE Plastics (Vadodara)
• EI Du Pont (Vadodara)
• ABB (Vadodara)
• Shell (Surat)
• British Gas (Surat)
• Cairn Energy (Surat)
• P&O (Mundra)
• Maersk (Pipavav)
• Wyeth (Atul, Valsad)
• Sanofi Aventis (Ak’lwar)
Automobiles
Engineering Plastics
Engineering Plastics, Agro Chemicals
Electricals
Gas
Gas
Gas
Container Port Management
Container Port Management
Pharmaceuticals
Pharmaceuticals
9. Japanese Companies in Gujarat
Japanese Company Indian Company Product/Sector/Area
Kowa Company Ltd. Adani Port Ltd. Cargo Handling &
Port Infrastructure
Chiyoda Corporation L & T Engineering
Matsushita Electric Matsushita
Lakhanpal
Battery India
Dry Cell Battery
C.ITOH & Co. Ltd. Reliance
Industries Ltd.
Refining of Crude Oil
& Organic Chemicals
Hitachi Life & Home
Solutions Inc.
Hitachi Life &
Home Solutions
India Ltd.
Air Conditioners
Hitachi Displays JCT Electronics Electronics
10. Japanese Companies in Gujarat
Japanese Company Indian Company Product/Sector/Area
Ricoh Company
Ltd.
Ricoh India Ltd. Facsimile,
Transceiver,
Photocopiers
Japan Metal Gasket
Company
Banco Products Automobile Cylinder
Gaskets
Kyoto Machinery Texprint Engineers Industrial Machinery
Nippon Sanso
Corporation
Inox India Ltd. Technology for
Cryogenic Tanks
Seiki Kogyosho Power Build
Elecon Gears Ltd.
Geared Motors and
Reducers
Nichimen India Gelatine and
Chemicals
Chemicals
11. Gujarat Strengths: Infrastructure
• Longest coastline in India – 1600 km.
• First state to privatize ports, railways and road transport
• 41 Ports
- Cargo handled at Kandla, a major port 41.5 MMT (12% of India)
- Cargo handled by minor and intermediate ports is 89.3 MMT
(80% of India)
• Container Handling - P&O at Mundra & Maersk at Pipavav
• Chemical Port Terminal (3 MMT) - only one in India
• LNG Terminals at Dahej (5 MMT) & Hazira (5 MMT)
• Broad Gauge Rail network across the state
• 11 Airports with an International Airport at Ahmedabad
• Pioneering work in Energy, Water, Urban Development,
Industrial Parks
• Gujarat Infrastructure Development Act – bringing
transparency in PSP in infrastructure projects
13. Investment / Business
Opportunities in Port Sector
• Greenfield Port Projects
– Vansi Borsi
– Mithi Virdi
– Simar
– Bedi
• Ro–Ro Ferry Services including Coastal
Traffic Development
• Ship Building & Ship Repairing
• Development of Modern Fishing Harbour
• Road & Rail Connectivity Infrastructure
• Container Terminal at Dahej
• Port Services & Storage Facilities
• Inland Water Transport
14. Energy: Power
• Reliable Power Supply:
Generation in 2005 is 9,007 MW*, which is to
increase to 17,477 MW by 2010
(*excluding 4,600 MW captive generation)
• Per Capita Power Consumption is 1,175 units, as
compared to India’s average of 592 units
• Rich availability of feedstock
– Natural Gas: 34 MMCD
– Lignite: 1,072 MMT
• One of the leading states in harnessing Wind Energy
15. Energy: Gas Based Economy
• 2 LNG Terminals at Dahej & Hazira
• Gas Grid Project - 2200 km. long pipeline with
60-70 MMCD capacity
RoU in Progress
Under Construction
Commissioned
750 Kms. P/L
450 Kms. P/L
16. SEZs & Industrial Parks
Gujarat is the only state in India having labour
flexibility and full relaxation in Labour laws in SEZs
• 11 SEZs
• 2 functional multi product SEZs (Kandla & Surat)
• 9 under development (Multi Product-3, Apparel-2,
Gems & Jewellery-1, Electronics-1, Petroleum &
Petrochemicals-1, Pharma-1)
• SEZs for Steel & Engineering, Auto Components and
Industrial Machinery being processed
• Major amendments in labour legislations in SEZs
• Industrial Parks established in key industries such as Apparel,
Gems & Jewelry, Biotechnology, Pharmaceuticals and IT &
Electronics
• 83 product clusters - Chemicals, Drugs and Pharmaceuticals,
Textile, Ceramics, Foundry, Engineering, Brass Parts, Fish
Processing, etc.
17. Gujarat: Urban Development
• Gujarat is one of the most urbanized states in India, with
40% urban population
• The state had declared 2005 as the Year of Urban
Governance
• Ahmedabad declared a Mega City
• Under the Sabarmati Riverfront Project in Ahmedabad,
a 9 km riverfront is being developed in the 1st phase
on both sides of the river
• MRTS and BRTS are being planned in Ahmedabad
• Transformation of Surat as the cleanest city in India
• Piped cooking gas system started through PSP
• CNG promoted in a big way in urban transportation system
• Modern SWM in place in Ahmedabad and Surat. To be
extended to other cities through local bodies and PSP
19. Gujarat: Engineering & Automotive
Source: Government of Gujarat
Sound Base
Largest producer of sponge iron and SAW & ERW pipes
Important center for the manufacture of textile machinery, chemical
machinery, pollution control equipment, printing machinery,
compressors, bearings, TV tubes and clocks
Important manufacturer of power generation plants, switchgears,
transformers and transmission line towers
Largest ship breaking yard in the country (Alang)
27 Clusters – castings & machine tools, brass parts, oil engines &
electric motors, submersible pumps, industrial valves &
bearings, auto-ancillaries
Anchor Industries
Essar Steel: Sponge Iron (2.4 MT), expanding to 6.4 MT
Hindalco: Copper Rods (250,000 MT), doubling capacity
Elecon Engineering: Largest manufacturer of industrial gears
Gujarat Apollo: Largest producer of road-making equipment
Kalpataru Power Transmissions: Largest capacity plant in the world
Other Key Investors: GM, L&T, ABB, Videocon & Jyoti Engineering
20. Gujarat: Chemicals & Petrochemicals
Source: Government of Gujarat
Sound Base
The largest contributor to Chemical and Petrochemical Industry of India
Well developed infrastructure for manufacturing, storing, transporting and
effluent treatment
Home to some of the largest chemical estates in Asia (Vapi, Ankleshwar)
4 Petrochemical Complexes, 2 large Petroleum Refineries and
6 large Chemical-Fertilizer Complexes
Special Economic Zone for Petroleum and Petrochemical Sector
Over 1360 large and medium scale Chemical & Petrochemical projects with
investment exceeding US$12.3 billion
Anchor Industries
GSFC: Diversified Fertilizer and Chemical product portfolio. About
US$ 650 million of investment. India’s first joint sector industrial complex
Reliance: State of the art Petroleum Refinery at Jamnagar with
capacity of 27 million tonnes per annum (540,000 barrels per day)
Torrent: Dominant player in the therapeutic areas of
Cardiovascular (CV) and Central Nervous System (CNS)
Other Key Investors: BASF, Bayer, Rallis India, Alembic, IPCL, Novartis, Zydus,
Ranbaxy, Cadila, IFFCO, etc.
21. Gujarat: Textiles and Apparel
Source: Government of Gujarat
Sound Base
Largest producer of cotton in the country and a major source for
man-made fabric
Modern process houses with environment friendly technology
Largest supplier of Denim in the world. Textile industry in Gujarat accounts
for 30% of woven fabrics in organized sector in country.
Surat in South Gujarat, contributes 40% of Art Silk fabric produced in India
Apparel Parks at Surat and Ahmedabad declared as Special Economic Zones
with flexible labour laws
Gujarat contributes about 12% of the total textile exports of the country
Over 1000 medium and large scale textile projects with investment
exceeding US$ 2.82 billion have been commissioned and about 300 projects
are under implementation
Anchor Industries
Arvind: Shirting, Knits, Khakhis and ready to wear garments. A leading
manufacturer of Denim in the world
Welspun: Home Textiles & Made ups. Amongst the top 3 Terry Towel
producers in the world
Other Key Investors: Reliance, Ashima, Dinesh, Raymonds, Aarvee, etc.
22. Gujarat: Strengths in IT-ITES
Location
Economical Real Estate: Monthly rentals - US$ 36 / 100 sq. ft. in
Ahmedabad (US$ 78 in Pune, US$ 127 in Delhi, US$ 193 in Mumbai)
Manpower
Premier Educational and Research facilities
Computer Education is compulsory in schools
Manpower rates - US$ 3.70 / shift in Ahmedabad
(US$ 5.00 in Pune, US$ 9.00 in New Delhi, US$ 9.20 in Mumbai)
Lowest attrition rate in the BPO sector among all other states
Capability
Ahmedabad has developed sound capabilities in Web Development
Services, call/contact centers & BPO operations – 8 large companies.
Infrastructure
Telecom: Highest number of phone connections - 12 per 100 persons;
highest number of ISPs in the country
India’s longest OFC network
First Software Technology Park in India. 3 IT Parks – Infocity in
Gandhinagar, GNFC Tower & Astron Tech Park in Ahmedabad
Source: Nasscom, Knight Frank, Cushman & Wakefield, Colliers Jardine, Cochinnet.com, A.T. Kearney analysis
23. Strengths in IT-ITES (cont….)
Government Support
Single Window facilitation mechanism
Incentives in real estate, power and telecom facilities
Science &Technology Department for implementation of
IT Policy with Gujarat Informatics Ltd. as corporate arm
Creation of Information Corridor between state capital and
districts
3% of budget committed to IT related activities
Private sector participation encouraged in
• Creation of Information Corridor
• Setting up Information Kiosks
• Provision of Database oriented services
• Setting up of Information Infrastructure
IT Plan submitted by National Task Force has targeted one PC per
50 persons by 2008. Gujarat aims to achieve this by 2006
Venture Capital Fund for IT services, IT software and IT products
Source: Government of Gujarat
24. Gujarat: Other USPs
• Gujarat is the numero uno state in India in
industrialization
• Least mandays lost due to industrial unrest – 0.94 % of the
country while contributing 16.2% of India’s industrial
production
• Major state owned enterprises turned around during the
last 4 years
• 302 investment proposals worth US$ 38.2 billion received
during the Global Investors’ Summits in 2003 & 2005.
• Kutch, a backward pastoral district – ravaged by the worst
earthquake of the century just 5 years ago, is now on way
to unprecedented economic prosperity
Gujarat is committed to maintain its double digit
economic growth
25. Japan – Gujarat: Potential
Scope for Japanese Companies in Gujarat
• Infrastructure, including SEZs and Real Estate Development
• Transport Infrastructure Project such as Mass Rapid Transit
Systems for rail and bus
• Ports, including Port & Cargo Management, Integrated Solutions
in Marine Logistics
• IT, ICT, ITES, High-end Electronics
– Japanese Companies can set up IT and Electronics Industrial Parks
• Engineering – Jointly develop an auto-ancillary Industrial Park
for export of auto components
• Chemical and Allied Industries – Technology Transfer
• Tourism – Theme Parks, Tourist Trails, Special Entertainment
Zones. Gujarat is celebrating 2006 as Tourism Year
• Healthcare – Gujarat accounts for 31% of the country’s Medical
Tourism
• Biotechnology, Nano-science, Electronics, Communication
Technology, etc.
